an LG dishwasher cost 800$, has a 20% chance of needing to be replaced in the first two years of purchace. A two-year extended warrenty cost 112.10$ on a dish washer. what is the expected value of the extended warrenty assuming it is replaced in the first 2 years?

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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an LG dishwasher cost 800$, has a 20% chance of needing to be replaced in the first two years of purchace. A two-year extended warrenty cost 112.10$ on a dish washer. what is the expected value of the extended warrenty assuming it is replaced in the first 2 years?

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